Saudi Arabia’s Arabian Mills eyes raising $271m from IPO
It will offer 15.4 million shares, or 30% of its capital, at a price range of SR62 to SR66
Arabian Mills’ listing comes as the Kingdom continues to dominate IPO activities in the region
Updated 02 September 2024
Nirmal Narayanan
RIYADH: Saudi wheat flour producer Arabian Mills for Food Products Co. plans to raise up to SR1.01 billion ($271 million) through its initial public offering on the Tadawul main market.
The company announced it will offer 15.4 million shares, or 30 percent of its capital, at a price range of SR62 to SR66. The institutional book-building period began on Sept. 1 and will close on Sept. 5.
Arabian Mills’ listing comes as Saudi Arabia continues to dominate IPO activities in the region.
A report by the Kuwait Financial Center in July revealed that the Kingdom led the Gulf Cooperation Council IPO market, raising $2.1 billion in the first half, a 141 percent increase from the same period in 2023.
Important announcement
We are pleased to announce that the price range for our IPO has been set at SAR 62 – SAR 66 per share and the institutional book-building period has kicked off.
Participation in the IPO is subject to the terms, conditions, risks, and restrictions… pic.twitter.com/5y7IO02s7B
“The decision to go public is a decisive one toward accelerating our growth trajectory,” said Rohit Chugh, CEO of Arabian Mills. “Looking ahead, the growing market for wheat flour, feed, and bran in the Kingdom presents compelling opportunities, and we are well-positioned to capitalize on robust demand through continuous innovation and quality enhancements.”
He added: “By going public, we are also committing to higher standards of transparency and corporate governance, which we believe will ultimately benefit our shareholders and other stakeholders alike.”
The total offering size is expected to be between SR954 million and SR1.01 billion, implying a market capitalization ranging between SR3.18 billion and SR3.38 billion.
The final offering price will be determined on Sept. 11, with the retail subscription period running from Sept. 18 to 19.
The company added that the final allocation of offer shares will be on Sept.26, with a refund of excess monies scheduled on Oct. 3.
HSBC Saudi Arabia has been appointed as the financial adviser, global coordinator, bookrunner, underwriter, and lead manager for the listing.
Alrajhi Bank, Saudi Awwal Bank, and Banque Saudi Fransi will serve as receiving agents for retail investors.
Arabian Mills has a daily flour production capacity of 4,920 tonnes and a daily feed milling capacity of 600 tonnes, according to its website.
By the end of 2023, the company held a 28.4 percent market share in Saudi Arabia, a 1.2 percent increase from 2021.
“This IPO is a catalyst for Arabian Mills to achieve sustainable, long-term growth and to continue our purpose of driving milling excellence and delivering nutrition,” added Chugh.
Saudi Arabia’s EV auto show kicks off with major fleet decarbonization agreements
J&T Express Middle East signed agreement with Saudi National Transportation Solutions Co. to embark on its fleet decarbonization journey
Rotana Waterfront has partnered with Electromin to enhance EV infrastructure in Jeddah
Updated 10 sec ago
MANAL AL-BARAKATI
RIYADH: The first day of the Riyadh EV Auto Show saw significant progress in Saudi Arabia’s journey toward sustainable transport, with major fleet decarbonization agreements being signed.
The event brought together industry leaders to showcase their commitment to reducing carbon emissions and embracing green technology.
Dubai-based logistics services company J&T Express Middle East was among the first to make an announcement, signing an agreement with the Saudi National Transportation Solutions Company to embark on its fleet decarbonization journey.
As a concrete step toward this goal, J&T Express is taking delivery of 10 electric vans to support their logistics needs. This transition to electric vehicles underscores the company’s dedication to sustainability and aligns with the Kingdom’s larger vision of environmental responsibility and reducing the carbon footprint in the logistics sector.
Saudi Bulk Transfer, a leading player in the transportation sector, has also committed to a multi-year decarbonization roadmap in partnership with NTSC and Jeddah-based smart mobility solutions provider Electromin.
As part of this ambitious plan, SBT is initially taking delivery of four electric trucks, marking the beginning of a larger fleet transformation. This highlights the growing trend of electrification in the heavy transport sector.
Rotana Waterfront has partnered with Electromin to enhance EV infrastructure in Jeddah. This agreement encompasses the ownership, installation, operation, and maintenance of public EV chargers at the Jeddah Corniche Waterfront development.
The initiative signifies an important step in expanding the accessibility of electric vehicle charging stations in key urban areas, supporting the Kingdom’s push toward a more sustainable future.
These initiatives come at a time when Saudi Arabia is making significant strides in promoting electric mobility, as highlighted by recent government policies and investment in EV infrastructure.
The Kingdom is actively working to reduce its carbon emissions and achieve a more sustainable future. The push for electric vehicles is a key component of this strategy, with the Kingdom aiming to have 30 percent of all vehicles in Riyadh electric by 2030.
This aligns with the broader goals of Vision 2030, which include reducing dependency on oil and promoting environmental sustainability.
The agreements signed by J&T Express Middle East, SBT, and Rotana Waterfront and Electromin, signal a growing momentum in the adoption of electric vehicles for commercial and public use.
The shift toward electrification in logistics, transportation, and public infrastructure marks a significant step in the Kingdom’s ongoing efforts to reduce greenhouse gas emissions and promote sustainable practices.
As Saudi Arabia continues to advance its electric mobility initiatives, the commitments made at the Riyadh EV Auto Show and partnerships, like the one between Rotana Waterfront and Electromin, represent crucial steps in achieving a sustainable and environmentally conscious future.
Saudi Arabia’s PIF revolutionizing e-mobility sector with $39bn investments: PwC official
PIF is significantly facilitating finance streams to create a healthy eclectic vehicle value chain, said official
Challenges in Kingdom’s e-mobility sector include availability of new vehicles and lack of charging infrastructure, he added
Updated 52 min 15 sec ago
MANAL AL-BARAKATI and Nirmal Narayanan
RIYADH: Saudi Arabia’s sovereign wealth fund is spearheading the growth of the e-mobility sector in the Kingdom with a planned $39 billion investment, according to an expert.
Speaking to Arab News on the sidelines of the EV Auto Show in Riyadh on Sept. 17, Heiko Seitz, partner and global and Middle East e-mobility leader at PwC, said the Public Investment Fund is significantly facilitating finance streams to create a healthy eclectic vehicle value chain.
“Between now and 2030, the PIF ecosystem will invest a total of approximately $39 billion in the creation of an entire new industry. We will see half of that capital going to the creation of (an) EV manufacturing ecosystem, one quarter going into battery manufacturing and supply chain, and another quarter into parts and chips etc,” said Seitz.
He added: “We see that there is a national effort to build an industry from scratch. It is quite spectacular and fascinating to see how a country is able, in such a short time, to partner up with leading companies globally, and bring the best of the world to the Kingdom, and therefore starting their own success journey from scratch.”
As part of #Vision2030, Saudi Arabia is accelerating its transition to electric vehicles, with 30% of Riyadh's vehicles set to be electric by 2030. This ambitious goal is supported by significant investments in local hashtag#EV manufacturing and infrastructure. Discover how the… pic.twitter.com/SLHhycmpBm
During the talk, Seitz also highlighted some of the main challenges Saudi Arabia is facing in the e-mobility sector, which include the availability of new vehicles and the lack of charging infrastructure.
“Approximately 30 percent of all the cars being offered for sale currently in Europe are battery electric. Here in the Middle East, it’s only approximately 7 percent, so there are lots of vehicle models that could be sold here, but they’re not yet. And that obviously limits the choice for the customer,” said Seitz.
The PwC official added that the issues surrounding charging infrastructure will be resolved soon, as companies including Electric Vehicle Infrastructure Co., also known as EVIQ, are ramping up charging stations in the Kingdom.
In May, EV maker Lucid, backed by the PIF, signed a memorandum of understanding with EVIQ to facilitate the activation of high-speed public charging infrastructure in Saudi Arabia.
“We see that there are lots of announcements of big companies like EVIQ starting to build the ecosystem, and I’m quite optimistic that we’re going to have a very bright future for electric mobility in the region,” added Seitz.
The PwC official further highlighted that the costs of electric vehicles are coming down globally, and it is slowly becoming as affordable as an internal combustion engine vehicle.
“In Saudi Arabia, we see that it is almost actually equally affordable to drive an EV as a commercial fleet operator than it is to drive the equivalent combustion engine vehicle. For the end customer, it is still a little bit more expensive because fleet customers always get better discounts,” he said.
He added that the prices of EVs in Saudi Arabia will come down further, with the entry of new car brands into the Kingdom.
“What we see now is that with more vehicle brands coming to the Kingdom to compete, there is going to be a price war, just like we have seen this price war unfold in Europe,” said Seitz.
He added: “I’m very confident that over the next years, possibly, already over the next months, prices will come down significantly, just like we’ve seen in Europe, where it’s already 15 percent cheaper without subsidies to drive a battery electric vehicle compared to the combustion engine car.”
Citing a recent survey conducted by PwC, Seitz said that 40 percent of the Saudi population is interested in buying an electric vehicle in the next three to four years.
“With more models coming to the market and with Lucid and Seer, (and) other local Saudi brands bringing the east to the market, I don’t see anything that should stop the customer from going all-electric,” he said.
The PwC official also lauded Saudi Arabia’s efforts in promoting green techniques in mobility, despite being an oil-rich nation.
He said: “Twenty-four percent of global carbon dioxide emissions come from the transport sector. So if we’re serious about making our future greener and cleaner, we have to decarbonize mobility now.”
Seitz praised Saudi Arabia for its “fabulous, green electricity agenda,” adding: “We expect that by 2035, the entire mobility transport, the entire mobility energy demand and much more will be fully fueled by green energy based on solar power. So, here the Kingdom actually shows that you don’t only electrify, you can also decarbonize mobility in an oil-rich country.”
Experts call for enhanced incentives to boost EV adoption
Updated 17 September 2024
Sulfa Alkhunaizi
RIYADH: The Saudi government holds the key to developing the necessary infrastructure for electric vehicles, a top official said on the first day of the EV Auto Show underway in Riyadh.
Speaking at a panel discussion titled “Charging Ahead: Building the Backbone of Saudi Arabia’s EV Revolution,” Mansour Al-Makahlas, head of the eMobility division at Solutions Valley, a part of Saudi Electric Co., outlined the essential steps needed to advance the market.
Al-Makahlas stressed the importance of expanding charging infrastructure to encourage participation from chief product officers.
“In order to attract users to come to Saudi (Arabia) or to buy this vehicle, they need to release the incentive. They need to build more charging stations; they need to support the CPO to get into this market.”
He continued:, “There must be an incentive from the government, such as the case in Europe and the US. CPOs know that the return on investment is long-term. It’s not short-term. So an incentive must be there.”
During the same discussion, Alhareth Al-Hisan, founder and CEO of iCharge, noted that Saudi Arabia has a strong foundation for EV adoption globally. “It has the grid capacity, it has the political will, and it has the ability for the customer to spend on the expensive electric vehicle.”
Al-Hisan pointed out that planning is a primary concern in the regional EV industry and suggested that Saudi Arabia could benefit from Europe’s approach to infrastructure development. “When the infrastructure for electric vehicles started in Europe, it was heavily planned and very detailed where to place them, how to place them,” he said.
Wolfgang Ademmer, chief marketing officer at the sustainable mobility firm Alpitronic, also encouraged Saudi Arabia to follow Europe’s lead. “There’s a learning from Europe for other markets. I’m always a big fan of shortcutting learning curves, and we can do this in Saudi Arabia.”
Ademmer emphasized the need for a comprehensive plan to support industry participants and ensure their success in the EV sector. “Coming up with a clear plan, giving confidence to all market players, including those inherently starting the business right now. Encourage them to stay and invest with the right guidelines, and then also convince, subsequently, the users, the car drivers, to use and to drive EVs.”
Li Bo, vice president of Huawei Digital Power Strategy and Marketing for the Middle East and Central Asia, and director of Huawei EV Charging Business for the same region, predicted a rise in the vehicle-to-EV charging ratio.
Li noted that renewable energy development is advancing in Saudi Arabia and expects that new regulations will lead to a greater focus on renewable sources and storage solutions for EV charging stations.
Toward the end of the panel discussion, Al-Makahlas predicted significant growth in the EV market. “So, I believe that the market will double by next year. You will be shocked by next year; I can guarantee you.”
The EV Auto Show in Riyadh underscores Saudi Arabia’s Vision 2030, highlighting its commitment to electric vehicles and sustainable technology. The exhibition serves as a key event for the Kingdom’s burgeoning EV ecosystem, attracting 10,000 attendees from 50 countries, including industry leaders, automotive manufacturers, charging solution providers, and policymakers, to discuss the future of mobility in the region.
PIF-backed Lucid to export Saudi-made EVs regionally, globally, official reveals
Updated 17 September 2024
MANAL AL-BARAKATI Reem Walid
RIYADH: US electric carmaker Lucid Motors plans to export a significant share of its vehicles produced in Saudi Arabia to both regional and global markets, according to a senior official.
At the EV Auto Show in Riyadh, Ali Rizvi, director of Business Operations at Lucid Middle East, revealed that the company—supported by Saudi Arabia’s Public Investment Fund—is increasing its production efforts within the Kingdom.
This initiative supports Saudi Arabia’s ambition to convert 30 percent of Riyadh’s vehicles to electric by 2030. This goal is part of a larger strategy to reduce emissions in the capital by 50 percent, contributing to the country’s broader aim of achieving carbon neutrality by 2060.
“We are producing vehicles in the Kingdom, (and) a large part of those will be exported within the region and to the rest of the world as well,” Rizvi said.
At the same panel, Mohammed Abuazzah, chief public relations officer at Saudi EV brand Ceer, discussed the company’s strategy. “We have a portfolio — a Saudi-inspired portfolio — that is innovative, inspirational, and can answer what the people of Saudi Arabia and the Gulf Cooperation Council, and hopefully globally, expect from an EV,” Abuazzah said.
He emphasized the importance of engaging with customers and expanding the company’s sales network in Saudi Arabia and the GCC.
Ulf Schulte, chief operating officer at Electric Vehicle Infrastructure Co., announced plans to expand the company’s charging network. “So, there are a lot of building blocks we are working on, and eventually now ramping up the number of sites. Our first site in Jeddah is going live today or tomorrow,” Schulte said.
“Our focus this year is on Riyadh, Jeddah, and Dammam, but we’re working to build a Kingdom-wide network to enable a long-distance EV ecosystem,” he added.
Andreas Flourou, group head of mobility at Red Sea Global, outlined the company’s commitment to sustainability. “We’re opening new hotels every quarter at the moment, and mobility is one of the foundations of our ethos based around sustainability and protecting the environment,” Flourou said.
“We’re opening a new hotel, Amaala, by the end of next year. This will mean hundreds of additional vehicles, guest vehicles, staff transportation, buses, sea planes, and marine vessels. We need an increase in chargers within our destinations,” he added.
Gary Flom, CEO of National Transport Solutions Co., emphasized the role of EVs in transforming Saudi Arabia’s infrastructure.
“Today, we are witnessing a revolution, a revolution that is driving toward a future where electric vehicles are not merely an option but a cornerstone of our nation’s transportation infrastructure,” Flom said.
“The rise of Saudi Arabia’s electric vehicle sector reflects a broader shift toward sustainability, innovation, and resilience. This transformation, catalyzed by the visionary leadership of His Royal Highness, Crown Prince Mohammed bin Salman, is positioning the Kingdom at the forefront of the global transition to clean energy,” the CEO added.
He added that National Transportation Solutions Co. is proud to be a key player in the ongoing transformation, which began three years ago. “NTSC was born with a clear and ambitious mission to provide Saudi fleet operators with the same or better tools, data, and operational efficiencies long enjoyed by their colleagues in the US and Europe.”
Also present in a separate session at the event, Omaimah Bamasag, deputy of transport enablement at the Transportation General Authority, highlighted that the event showcases the collaboration between the public and private sectors in advancing new technology skills, aligning with the goals of Vision 2030 and the National Strategy.
Hosted at the Riyadh International Convention and Exhibition Center from Sept. 17 to 19, this three-day event highlights Saudi Arabia’s commitment to EVs and sustainable technology, in line with Vision 2030.
The exhibition is a key event for the Kingdom’s growing EV ecosystem, gathering automotive manufacturers, charging solution providers, policymakers, and consumers to discuss the future of mobility in the region.
Attendees will explore various EVs, charging solutions, and green technologies. The event will feature interactive seminars and panel discussions, offering opportunities to engage with industry experts and innovators.
Industry leaders forecast a bright future for electric vehicles in Saudi Arabia
Updated 59 min 29 sec ago
Miguel Hadchity Hajar AlQusayer
RIYADH: The EV Auto Show, held at the Riyadh International Convention and Exhibition Center, has gathered industry experts to discuss the future of electric vehicles in Saudi Arabia and the broader Middle East.
This year’s event, running from Sept. 17 to 19, is expected to reshape the Kingdom’s mobility landscape as it aligns with Saudi Vision 2030, a plan aimed at diversifying the economy and promoting sustainability.
The three-day gathering has drawn key stakeholders, including automakers, charging solution providers, and policymakers, all keen to share insights on the transformation of the regional EV market.
Battery electric vehicles gaining traction in the Kingdom
Group Head of Mobility at Red Sea Global, Heiko Seitz, was one of several panelists at the event who highlighted the favorable conditions for EV adoption.
“In Saudi Arabia, the Middle East, we have more favorable temperatures for battery electricity than we do up there in the Nordics in Europe,” said Seitz.
He underscored that these climate advantages and technological advancements are key factors driving the region’s shift to electric mobility.
Seitz elaborated on the market dynamics, saying: “We have more or less approached cost parity, which basically means, in simple terms, it is now almost equally affordable to drive an EV with the comparable car models compared to an internal combustion car in Saudi. In the UAE, the car prices are slightly lower, so they have already passed the tipping point.”
Seitz expected prices to drop further as more models and brands enter the market, leading to greater EV adoption across the Middle East.
He predicted a dramatic shift in the composition of the global car market over the next decade, saying: “Seven years from now, the mix in the world available will be that 30 percent of all vehicles will be battery electric. So lots of change there, and that will change the cost profile in the Kingdom and the Middle East in general.”
A greener future powered by renewables
Renewable energy is also playing a critical role in the Kingdom’s EV strategy. “There is more and more renewable energy, especially solar energy, coming into the mix here in Saudi Arabia,” said Seitz.
He expressed optimism that the country’s efforts to integrate solar power would advance the greening of its mobility sector. “This is one of the countries in the Middle East where it’s safe to say mobility will not only be electrified, it will also be green in the future,” he added.
Group Head of Mobility at Red Sea Global, Heiko Seitz. AN
Seitz also shared impressive forecasts for EV sales in Saudi Arabia, predicting that by 2030, 64 percent of all new cars sold in the Kingdom will be fully battery electric, driven by local and international brands eager to compete in the region’s rapidly growing market.
Challenges and opportunities in EV manufacturing
The panel discussion also highlighted EV production progress within Saudi Arabia. Oswaldo Dorantes, manager of automotive at the National Industrial Development Center, emphasized the growing presence of manufacturers in the Kingdom.
“We already have some manufacturers in Saudi making multiple manufacturing schemes like CKD (completely knocked down) and SKD (semi-knocked down) commercial vehicles and commercial trucks for medium and heavy-duty purposes,” Dorantes said.
He highlighted various government and private sector initiatives to develop local talent and support the broader EV ecosystem, underlining that programs like the National Automotive and Vehicle Academy or Nava are playing a key role in this strategy.
However, scale remains a critical challenge in attracting suppliers. “When we look at the development of the ecosystem, the first priority is going to be scale. How can we justify bringing in one supplier if we don’t have enough scale?” Dorantes asked.
He emphasized the importance of government support in overcoming this barrier, adding: “It doesn’t matter if you can bring the most reliable technology if you’re not competitive enough.
“This is something we look at from multiple perspectives, and that’s why the government needs to support it in the beginning.”
Advancements in battery technology
On the technical side, Julia Palle, vice president of sustainability at Formula E, spoke about the durability and efficiency of EV powertrains.
“The technology of the batteries and the powertrain in an electric vehicle is basically one of the most durable systems that you have,” Palle said, adding that EVs transform 85 percent of their energy into movement, compared to traditional cars, which only convert up to 25 percent.
Palle’s insights aligned with those of Klaus Wawra, managing director at Hofer Powertrain, who discussed the technology crossover between EVs and hybrids.
“With a hybrid vehicle, you will still need an electric motor, you need an inverter, an onboard charger, and a direct current fast charging converter. So, more or less, all the technologies you have to cover inside the EV, you can then scale dedicatedly to this hybrid application,” Wawra explained.
A panel discussion on the unique advantages of EV technology. AN
Consumer demand on the rise
The need for electric and hybrid vehicles is steadily increasing in Saudi Arabia. Hasan Nergiz, managing director at Al-Futtaim Electric Mobility Co., shared data indicating the growing popularity of hybrids in the market.
“Right now, if I look at our last month’s order take, around 75 percent of Saudi customers are opting into hybrids,” Nergiz said. This statistic reflects the broader trend toward sustainable mobility solutions in the Kingdom.
